I would like to start close to home as I plan to self manage the rental side of it.

- Most real estate investing projects have negative cashflow for the first few months - if not the first few years.Keep listening to the podcasts, but pay attention to WHEN THEY WERE RECORDED!

You should create a presentation to demonstrate how you intend to use their money and what they can expect in return.

My question is, if I was to proceed with the Subject To deal, will this somehow be discovered?

If you tie the bonus to a new lease, a bad employee will lower standards to find tenants quickly.

It's doesn't really sound like you are much into being landlords so doing a 1031 might just change from "annoying when things come up" to full fledged head aches when you buy more and or larger properties in your current market.

It might be best to consider wholesaling it and letting someone else finish the project, break even and move on.

If anyone knows a good go to in Temecula California.

Seamless Project Execution – A well-run design process minimizes downtime.

I would also add, a contractor that you can buy materials for and they know how to put them in with little to know direction (reduces the management time of the project).